5. Course description
An introductory course in the analysis,
design and operation of logistics and
supply chain
Presented through lectures along with
several case studies and experiments
The lectures consist of nine parts
6. Learning objectives
Knowledge the strategic role of the supply
chain
An understanding of logistic systems &
their management problems
Ability to devise workable solutions in
business situations
7. Textbooks
Textbook
– Harrison, A. and Hoek, R. V. (2010) Logistics
Management and Strategy, third edition, 中国
人民大学出版社
References (not required)
– Christopher, M. (2006) Logistics and Supply
Chain Management: Creating Value-adding
Network, third edition, 电子工业出版社
– 张余华，现代物流管理，清华大学出版
社， 2010 年。
9. Grading Policy
Grading
– Assignment and Quiz 10%
– Midterm 20%
– Final Project 70%
Midterm
– Case study
– Final presentation
Final project
– A closed examination held in the last week of term
12. logistics and Supply chain1
Material and information flow2
Competing through logistics3
Logistics strategy4
13. Seven-eleven convenience store
– Describe the key logistics processes at 7-11.
– What differences between the early reform
and the regional distribution center at 7-11.
– What do you think are the main logistics
challenges in running the 7-11 operation.
Case study
15. Key issues
11
What is supply chain, and
how is it structured?
22
What is the purpose of a
supply chain?
16.
17. The Supply Chain Concept
Development of the Concept
– Total systems cost - remains an important
element of logistics analysis.
– Outbound logistics – the warehousing and
distribution of finished goods.
– Inbound logistics – the receiving and warehousing
of raw materials, and their distribution to
manufacturing as they are required.
– Value chain analysis integrated logistics activities.
19. A supply chain is a group of partners who
collectively convert a basic commodity
(upstream) into a finished product (downstream)
that is valued by end-customers, and who
manage returns at each stage.
The Supply Chain management Concept
DefinitionDefinition
Planning and controlling all of the processes
that link partners in a supply chain together in
order to serve needs of the end-customer.
20. The process starts with
several external suppliers
that move milk, cardboard,
and plastic to the processing
plant.
After the milk is processed
and packaged, it is delivered
to retailers, who sell it to
customers. The alternative
delivery system is delivery
from a warehouse directly to
customers’ homes.
Supply chain:
structure and tiering
21. Supply chain:
structure and tiering Supply chain can be fairly
complex. The supply
chain for a car
manufacturer includes
hundreds of suppliers,
dozens of manufacturing
plants (for parts) and
assembly plants (for
cars), dealers, direct
business customers,
wholesalers, customers,
and support functions
such as product
engineering and
purchasing.
27. Case study: Seven-eleven’s distribution
strategy
Delivery arrives from over 200 plants
Delivery is cross docked at DC (over 80 DCs for
food)
Food DCs store no inventory
Combined delivery system: frozen foods, chilled
foods, room temperature and hot foods
11 truck visits per store per day (compared to 70
in 1974)
No supplier (not even coke!) delivers direct
28. Case study: Seven-eleven’s
Information Strategy
Quick access to up to date information (as
contrasts with data)
– High speed data network linking stores, headquarters,
DCs and suppliers
– Store hardware
– Store computer
– POS registers linked to store computer
– Graphic Order Terminals
– Scanner terminals for receiving
37. Order winners and order qualifiers
Order winners
are factors that directly and
significantly help products to
win orders in the
marketplace.
Customers regard such
factors as key reasons for
buying that product or
services.
Different logistics
performance
objectives
Order qualifiers
are factors that are regarded
by the market as an ‘entry
ticket’.
Unless the product or service
meets basic performance
standards, it will not be taken
seriously.
38. Activity 3
Compare the details for characteristics of
both household appliance and mobile
phone’s product lines.
Go on to identify the principal order
winners and qualifiers for each product.
Vs.
39. logistics and Supply chain1
Material and information flow2
Competing through logistics3
Logistics strategy4
40. The value chain: Linking supply chain
and business strategy
New
Product
Development
Marketing
and
Sales
Operations
Business Strategy
New Product
Strategy
Marketing
Strategy
Supply Chain Strategy
New product
Development
Marketing
and sales
Operations Distribution Service
Finance, Accounting, Information Technology, Human Resources
41. How to Achieving Strategic Fit
Understanding the Customer
– Lot size
– Response time
– Service level
– Product variety
– Price
– Innovation
How to measure?
Implied Demand
Uncertainty
42. Levels of Implied Demand Uncertainty
Detergent High Fashion
Low High
Price Responsiveness
Customer Need
Implied Demand Uncertainty
43. Understanding the Supply Chain: Cost-
Responsiveness Efficient Frontier
High
High
Low
Low
Cost
Responsiveness
46. Drivers of Supply Chain Performance
Efficiency Responsiveness
Inventory Transportation Facilities Information
Supply chain strategy and structure
Drivers
Competitive strategy
47. Considerations for Supply Chain Drivers
Driver Efficiency Responsiveness
Inventory Cost of holding Availability
Transportation Consolidation Speed
Facilities Consolidation /
Dedicated
Proximity /
Flexibility
Information What information is best suited for
each objective
Editor's Notes
How does a supply chain make the efficiency / responsiveness tradeoff and position at the appropriate point - using Inventory, Transportation, Facilities, and Information decisions.
